## **THE BICKHAM HOME**
## **BOWDON**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED**
## **31[st] MARCH 2021**
## **CHARITY NUMBER: 219495**
**ALLEN MILLS HOWARD LIMITED CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS ALTRINCHAM**
**THE BICKHAM HOME, BOWDON**
## **INDEX TO FINANCIAL STATEMENTS FOR THE YEAR ENDED**
## **31[st] MARCH 2021**
||**Page**|
|---|---|
|Reference and Administrative Information|1|
|Trustees' Report|2|
|Auditors' Report|6|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Statement of Financial Cash Flows|11|
|Notes to the Financial Statements|12|
|Detailed Income and Expenditure Account|22|
## **THE BICKHAM HOME**
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
## **Trustees**
Dr C J Davies (Chairman) Mrs C M Gallaway Mr J O’Donnell Mrs J Ravenscroft Mr I Macklin Mr P Long
## **Address**
Bickham House Green Walk Bowdon Cheshire WA14 2SN
## **Charity Number: 219495**
## **Auditors**
Allen Mills Howard Limited Chartered Accountants and Statutory Auditors Lewis House 56 Manchester Road Altrincham WA14 4PJ
## **Bankers**
Barclays Bank 48-50 George Street Altrincham Cheshire WA14 1RH
## **Investment Managers**
Barclays Wealth 1[st] Floor 3 Hardman Street Spinningfields Manchester M3 3HF
## **Registered Manager**
Mrs H Taylor
## **Treasurer**
Mrs T O’Toole
1
## **THE BICKHAM HOME, BOWDON**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2021**
The trustees present their report with the financial statements of the charity for the year ended 31st March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity trust instrument, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing the accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102).
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The trust is an unincorporated trust, constituted under a trust instrument dated 12[th] March 1954 as amended by the scheme of 20[th] July 2004. The trust was set up in accordance with the Will of the late Helen Constance Bickham.
The trustees are responsible for the overall supervision and management of the Home, with the day to day management delegated to the Registered Manager and the financial affairs to the Treasurer.
The trustees comprise:
Dr C J Davies – BM BS MRCP General Medical Practitioner [Chairperson] Mrs C M Gallaway Mr J O’Donnell – Notary Public Mrs J Ravenscroft Mr I Macklin Mr P Long – Chartered Accountant
Supported by:
Mrs H Taylor – Registered Manager Mrs T O’Toole ACMA – Treasurer Ms M Parry – CareSolve Management Consultancy
## **OBJECTIVES AND ACTIVITIES**
The charity’s objective is to care for our residents, creating a welcoming home for elderly people whilst ensuring they feel safe in an environment, they are familiar with. The Bickham Home currently caters for up to 26 residents, including the capacity for respite care. The Home consistently provides full attention to detail with genuine warmth towards all residents and offers around the clock assistance of the highest standard.
The last Care Quality Commission inspection was in July 2019 and again, they rated the Home as Good in all areas. The Home is providing a first-class service that strives to achieve continued improvements.
## **PUBLIC BENEFIT**
The trustees confirm that they have, when and where necessary to do so, paid regard to the Charity Commission’s Guidance on Public Benefit when considering and making their decisions.
The trustees have allowed the Home and gardens to host various charitable events each year to assist fundraising and to provide a local awareness of the facilities which are on offer at the Home. However, this has been curtailed due to the Covid restrictions. The kitchen garden is currently being utilised by local gardeners and our chef for the growing of vegetables and fruit, some of which is sued in the Home for the benefit of the residents.
## **TRAINING**
Staff training has always been a high priority with all staff encouraged to sign up for Diploma qualifications at progressive levels. Ongoing staff training continues with both in-house and external accredited courses. University and 6[th] Form work experience students who intend going on to medical, nursing or care degrees are employed on temporary contracts to assist their education and care experiences, although this has currently been suspended due to Covid. New trustees are selected by the trustees and introduced to the workings of the Home and are kept updated through regular trustees’ meetings and communication throughout the year.
2
## **THE BICKHAM HOME, BOWDON**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2021**
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR**
The charity aims to generate a reasonable surplus each year in order to properly fund the day to day running of the Home and to provide funds for exceptional maintenance and improvements. However, this year has been overshadowed by the Covid-19 pandemic. New resident admissions were curtailed, and the home suffered the loss of 11 residents during the year, [6 due to a Covid-19 outbreak in November 2020]. Despite these events and following on from a challenging year in 2019-2020 we have generated an operating profit of £11k. This has mainly been thanks to Trafford Covid financial support.
During this financial year we have tried to continue with a rolling program of room improvements including décor, furniture and fittings and flooring although this has been curtailed due to Covid restrictions.
Our Registered Manager, Mrs H Taylor, continues to ensure that the Home is well led, delivers a high standard of care for its residents and builds on its excellent reputation. The Deputy Manager and the Chef both reached the finals of the 'Great British Care' awards in November 2018.
## **Financial Results**
The Trust’s total income has increased by 20% over the previous year. Despite the restrictions on new admissions, resident fees increased by 11% [over £86,000] and donations also increased by 60%. Fortunately, we also received over £87,000 Covid-19 support from the government.
Expenditure also increased by just over 6%. This was principally due to staff costs. Temporary staff costs were up by a further 30% and permanent staff costs by 5%. The use of temporary agency staff was driven by high levels of staff sickness and self-isolation as a result of Covid-19. Increasing costs particularly of temporary staff and the difficulties of managing the home during a Covid outbreak led us to appoint management consultants CareSolve to help us run the home more efficiently on an ongoing basis.
The charity held reserves at the balance sheet date of £1,205,416 (2020: £1,072,563). Of this amount, the endowment fund totaled £217,442 (2020: £179,561) and unrestricted (general) reserves totaled £987,974 (2020: £893,002).
## **Reserves policy**
The trustees aim to maintain free reserves in unrestricted funds at a level which at least exceeds three months of charitable expenditure. Based on the budgeted expenditure for 2021/22, this requires free reserves to be held of approximately £241,000. The trustees consider that this level will provide sufficient funds to meet the inevitable capital expenditure needed to maintain the high standard of care to residents in a Victorian Mansion house, to fully comply with any updates required to CQC requirements and to cover any unexpected falls in occupancy levels.
3
## **THE BICKHAM HOME, BOWDON**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2021**
## **Investment Management and Policy**
The charity’s investments are managed by Barclays Wealth. There are no restrictions on the charity’s power to invest.
The trustees’ investment powers are set out in the charity’s trust instrument. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s views of the market prospects in the medium term.
The policy is to maximise total return through a diversified portfolio whilst providing a level of income advised by the trustees from time to time. The performance of the portfolio and the charity’s investment strategy are reviewed by the trustees and their representatives who meet with the investment manager at least twice a year.
During the year the charity’s investment consisted of a pooled investment (Barclays Charity Fund). This investment is made up of UK Equity 48%, International Equity 25%, Property 9% and Cash and Bonds 13%. The remaining balance is made up of Alternative Trading Strategies and Commodities.
The charity investment achieved an income yield of 2.6% (2020: 3.7%).
The Trustees receive quarterly reports concerning the performance of the Charity Fund and the charity’s investment adviser attends in person at a Trustee meeting each year. The Home’s treasurer also liaises with the charity’s investment adviser and seeks their advice when necessary. Given that the charity has no immediate need to realise value from the portfolio, other than through income, and given that the trustees’ intention is to hold investments over the longer term, the advice given is to monitor the investment performance but not to radically amend the investment policy that has been followed in recent years.
The trustees will continue to review performance but, given that they view their investments as being for the long term, they remain confident that the policy adopted is appropriate for the charity.
## **Key Management Personnel remuneration**
The trustees consider the board of trustees, the Registered Manager and Treasurer as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give this time freely and no trustee remuneration was paid in the year.
## **FUTURE PLANS**
As the effects of the Covid pandemic have reduced in the UK, we have been able to open up the Home again and admit new residents. Occupancy levels are now above budgeted, but we remain concerned about the level of temporary staff usage, particularly as their payment rates are around 50% more than permanent staff. The Trustees have welcomed the appointment of CareSolve as management consultants who specialise in the residential home market. After some teething problems, CareSolve are working well with the management and staff to identify areas of cost saving, improved working processes and most importantly to improve our service to our residents. Our ongoing repair and maintenance programme has been seriously affected by the Covid pandemic. Contractors have only been allowed in the home for emergency repairs such as flood damage from the roof. There is a significant backlog of maintenance issues that we are now able to start addressing. We are also restarting our ongoing refurbishment of our residents’ rooms. Regular upkeep of a building that was built in the 1860s remains challenging and a significant expense for the charity.
## **RISK MANAGEMENT**
The trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks [see above].
## **TRUSTEES INDEMNITY ARRANGEMENTS**
The charity has Directors’ and Officers’ insurance to indemnify the trustees to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, their execution of their powers, duties and responsibilities as trustees of the charity.
4
## **THE BICKHAM HOME, BOWDON**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[st] MARCH 2021**
## **STATEMENT OF THE TRUSTEES' RESPONSIBILITIES**
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust instrument require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue operating.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity so as to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, and the provision of the trust instrument. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
Approved by the trustees on 8[th] September 2021 and signed on their behalf by:
**…………………………………….. Dr C J Davies – Chair of Trustees**
5
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BICKHAM HOME, BOWDON**
## **Opinion**
We have audited the financial statements of The Bickham Home (the 'charity') for the year ended 31st March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31st March 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any materials uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements ; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
6
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BICKHAM HOME, BOWDON**
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditors’ responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
As part of designing our audit work, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.
In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.
We also considered potential financial or other pressures, opportunity and motivation for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing or manual journals and key exanimate and judgements made by management.
We made enquiries of management with regards to compliance with applicable laws and regulations, specifically the Care Quality Commission (CQC), and corroborated any necessary evidence to relevant information, for example, minutes of the directors' meetings or CQC reports.
We addressed the risk of management override of internal controls including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
7
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BICKHAM HOME, BOWDON**
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Allen Mills Howard Limited Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ
Date: 13[th] September 2021
8
## **THE BICKHAM HOME, BOWDON**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[st] MARCH 2021**
|||**2021**|
**2021**|**2021**|
2020|
|---|---|---|---|---|---|
||Note|**£**|**£**|**£**|£|
|||**Unrestricted**|**Endowment**|**Total**|Total|
|||**Funds**|**Funds**|**Funds**|Funds|
|**Income and endowments from:**||||||
|Donations and grants|2|**95,697**|**-**|**95,697**|5,252|
|Charitable activities:||||||
|Operation of care home|3|**875,922**|**-**|**875,922**|790,671|
|Investment income|4|**12,413**|**5,519**|**17,932**|22,488|
|Other incoming resources||**2,912**|**-**|**2,912**|610|
|||_______|_______|_______|_______|
|**Total income and endowments**||**986,944**|**5,519**|**992,463**|819,021|
|||_______|_______|_______|_______|
|**Expenditure on:**||||||
|Raising funds:||||||
|Investment management costs||**1,261**|**569**|**1,830**|1,970|
|Charitable activities:||||||
|Operation of care home|5|**979,611**|**-**|**979,611**|921,138|
|||_______|_______|_______|_______|
|**Total**||**980,872**|**569**|**981,441**|923,108|
|||_______|_______|_______|_______|
|Net income/(expenditure)||||||
|before gains/(losses) on investments||**6,072**|**4,950**|**11,022**|(104,087)|
|Net gains/(losses) on investments||**83,950**|**37,881**|**121,831**|(86,496)|
|Transfers between funds||**4,950**|**(4,950)**|**-**|-|
|||_______|_______|_______|_______|
|**Net movement in funds**||**94,972**|**37,881**|**132,853**|(190,583)|
|**Reconciliation of funds**||||||
|Total funds brought forward||893,002|179,561|1,072,563|1,263,146|
|||_______|_______|_______|_______|
|Total funds carried forward||**987,974**
_______|**217,442**
_______|**1,205,416**
_______|1,072,563
_______|
The Statement of Financial Activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
9
## **THE BICKHAM HOME, BOWDON**
## **BALANCE SHEET AS AT 31[st] MARCH 2021**
|||**2021**|
**2021**|
**2021**|
2020|
|---|---|---|---|---|---|
|||**Unrestricted**|**Endowment**|**Total**|Total|
|||**Funds**|**Funds**|**Funds**|Funds|
||Note|**£**|**£**|**£**|£|
|**Fixed assets**||||||
|Tangible assets|9|**374,261**|**-**|**374,261**|407,512|
|Investments|10|**461,908**|**208,428**|**670,336**|548,505|
|||_______|_______|_______|_______|
|**Total fixed assets**||**836,169**|**208,428**|**1,044,597**|956,017|
|||_______|_______|_______|_______|
|**Current assets**||||||
|Debtors|11|**14,708**|-|**14,708**|30,659|
|Cash at Bank and in Hand||**191,288**|**9,014**|**200,302**|130,745|
|||_______|_______|_______|_______|
|**Total current assets**||**205,996**|**9,014**|**215,010**|161,404|
|||_______|_______|_______|_______|
|**Liabilities**||||||
|Creditors falling due within one year|
12|**(54,191)**|**-**|**(54,191)**|(44,858)|
|||_______|_______|_______|_______|
|**Net current assets**||**151,805**|**9,104**|**160,819**|116,546|
|||_______|_______|_______|_______|
|**Net assets**||**987,974**|**217,442**|**1,205,416**|1,072,563|
|||_______|_______|_______|_______|
|**The funds of the charity:**|13|||||
|Endowment funds||**-**|**217,442**|**217,442**|179,561|
|Unrestricted income funds||**987,974**|**-**|**987,974**|893,002|
|||_______|_______|_______|_______|
|**Total charity funds**||**987,974**
_______|**217,442**
_______|**1,205,416**
_______|1,072,563
_______|
The financial statements were approved by the trustees on 8[th] September 2021 and signed on their behalf by:
## ……………………………… **J O’Donnell – Trustee**
……………………………… **C J Davies – Trustee**
10
## **THE BICKHAM HOME, BOWDON**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[st] MARCH 2021**
|Note
**Net cash used in operating activities**
17
Cash flows from investing activities:
Investment income
Purchases of fixed assets
**Net cash provided by investing activities**
**Change in cash and cash equivalents in**
**the year**
Cash and cash equivalent brought forward
**Cash and cash equivalent carried forward**
18|**Total**
Total
**Funds**
Funds
**2021**
2020
**£**
£
**51,625**
(105,380)
_______
_______
**17,932**
22,488
**-**
(34,635)
_______
_______
**17,932**
(12,147)
_______
_______
**69,557**
(117,527)
**130,745**
248,272
_______
_______
**200,302**
130,745
_______
_______|
|---|---|
11
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
## **1. Accounting policies**
## **Basis of preparation**
The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1[st] January 2015)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The presentational currency of the financial statements is the Pound Sterling (£).
## **Preparation of the accounts on a going concern basis**
The charity has prepared budgets which indicate that the charity has sufficient reserves in order to meet its liabilities as they fall due and, on that basis, the trustees are satisfied that it remains appropriate to prepare the financial statements on a going concern basis.
## **Funds Structure**
The charity has a single permanent endowment. The endowment provides for the trustees to invest the capital in perpetuity as it is managed on a total return basis. The trustees, at their discretion, may allocate any part of the unapplied total return to the general purpose of the charity.
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects.
## **Income recognition**
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Incoming resources from Charitable Activities comprise of fees receivable from private individuals and local authorities.
Investment income comprises dividends and interest received. Dividends are recognised on a cash received basis, interest on funds held on deposit is recognised on a receivable basis when the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Government and local authority grant income is recognised on a receivable basis when there is evidence of entitlement, receipt is probable and amounts can be measured reliably.
In accordance with the Charities SORP FRS102, volunteer time is not recognised.
## **Expenditure recognition**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
All expenditure is stated inclusive of irrecoverable VAT.
Expenditure on raising funds comprise investment manager’s fees.
Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
Direct charitable expenditure comprises all expenditure directly relating to the objects of the charity. When necessary, costs are allocated between direct charitable expenditure, support costs in proportion to time spent and estimated use of services and materials.
12
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
## **Tangible fixed assets**
No value is included in the accounts in respect of the property, household goods and equipment transferred from the Estate of Miss H C Bickham deceased in 1954. Subsequent capital expenditure on replacing equipment has been written off in the year it was incurred. However, the net book value of the building and equipment, if depreciated, would not be material.
Since 2012, land and buildings is stated in the balance sheet at cost. Capital items costing less than £5,000 are written off as an expense as acquired.
## **Depreciation**
Depreciation is provided at the following annual rate in order to write off each asset over its estimated useful life.
Land and buildings 5% on cost Fixtures and fittings 10% on cost
## **Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains or losses arising on the revaluation and disposals throughout the year.
The trust does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **Realised gains and losses**
All gains and losses are posted to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
## **Debtors**
Trade and other debtors are recognised at the transaction price less any impairment.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.
## **Creditors and provisions**
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are normally recognised at the amount the charity anticipates it will pay to settle the debt.
## **Pensions**
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
## **Operating leases**
Rentals paid under operating leases are charged to the income and expenditure account on a straight-line basis over the period of the lease.
13
**THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
|**2.**|**Donations and grants**|**2021**|2020|
|---|---|---|---|
|||**£**|£|
||Gifts|**8,399**|5,252|
||Grants received|**87,298**|**-**|
|||______|______|
|||**95,697**|5,252|
|||______|______|
||Grants received consist of Covid-19 Support Grants from Trafford Council|of £75,452 (2020: £nil) and||
||HMRC Coronavirus Job Retention Scheme Grants of £11,846 (2020: £nil).|||
|**3.**|**Operation of care home**|**2021**|2020|
|||**£**|£|
||Residents’ fees|**873,650**|787,597|
||Residents’ charges|**2,272**|3,074|
|||______|______|
|||**875,922**|790,671|
|||______|______|
|**4.**|**Investment income**|**2021**|2020|
|||**£**|£|
||Listed investments|**17,750**|21,652|
||Bank interest|**182**|836|
|||______|______|
|||**17,932**
______|22,488
______|
14
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
|**5. Analysis of charitable expenditure**
Staff costs
Social security
Pension costs
Temporary staff
Food and provisions
Insurance
Council tax
Heat and light
Water charges
Garden upkeep
Cleaning and waste
Repairs
Care consumables
Postage, telephone and stationery
Depreciation
Registration fees
Sundries
Staff Training
Legal and professional fees
Entertainment for residents
Computer software
Management consultants
Support costs (see note 6)
Governance costs (see note 6)|**2021**
**£**
**547,738**
**37,892**
**10,577**
**97,153**
**53,352**
**11,645**
**1,643**
**28,808**
**15,951**
**6,000**
**26,114**
**49,491**
**10,510**
**7,053**
**33,251**
**4,270**
**4,454**
**3,176**
**1,183**
**2,359**
**5,109**
**2,305**
**15,977**
**3,600**
_______
**979,611**
_______|2020
£
520,211
37,889
10,343
74,709
53,826
8,229
1,567
28,125
11,629
6,265
24,098
53,854
10,072
5,688
31,808
4,323
6,565
1,786
1,743
6,278
2,274
-
16,136
3,720
_______
921,138
_______|
|---|---|---|
No employees had emoluments in excess of £60,000 during the year (2020: none).
Temporary staff are used by the clients to cover staff holidays and illnesses.
The average number of employees during the year was:
|Provision of care|**2021**
**29**
______|2020
29
______|
|---|---|---|
The Key Management Personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprises the trustees, manager and treasurer. Total amount of employee benefits received by Key Management Personnel in the year (including Employers NICs and pension contributions) was £70,373 (2020: £72,112).
15
**THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
## **6. Analysis of support and governance costs**
The breakdown of support costs and how these were allocated between governance and other support costs is shown in the table below:
|**General**
**Support**
**Governance**
**£**
**£**
Treasurer’s honorarium
**11,134**
**-**
Bank charges
**310**
**-**
Advertising and marketing
**-**
**-**
Auditors’ remuneration:
- Statutory audit services
**-**
**3,600**
- Other non-audit services
**4,533**
-
_______
_______
**15,977**
**3,600**
_______
_______|**2021**
**£**
**11,134**
**310**
**-**
**3,600**
**4,533**
_______
**19,577**
_______|2020
£
11,236
37
1,100
3,720
3,763
_______
19,856
_______|
|---|---|---|
**7. Trustees’ remuneration and benefits**
There were no trustees’ remuneration or other benefits for the year ended 31[st] March 2021 nor for the year ended 31[st] March 2020.
## **Trustees’ expenses**
There were no trustees’ expenses for the year ended 31[st] March 2021 nor for the year ended 31[st] March 2020.
16
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
## **8. Comparatives for the statement of financial activities**
||||2020|
2020|
2020|
|---|---|---|---|---|---|
|||Note|£|£|£|
||||Unrestricted|Endowment|Total|
||||Funds|Funds|Funds|
|**Income and endowments from:**||||||
|Donations|2||5,252|-|5,252|
|Charitable activities:||||||
|Operation of care home|3||790,671|-|790,671|
|Investment income|4||15,755|6,733|22,488|
|Other incoming resources|||610|-|610|
||||_______|_______|_______|
|**Total**|||812,288|6,733|819,021|
||||_______|_______|_______|
|**Expenditure on:**||||||
|Raising funds:||||||
|Investment management costs|||1,357|613|1,970|
|Charitable activities:||||||
|Operation of care home|5||921,138|-|921,138|
||||_______|_______|_______|
|**Total**|||922,495|613|923,108|
||||_______|_______|_______|
|Net income/(expenditure)||||||
|Before (losses)/gains on investments|||(110,207)|6,120|(104,087)|
|Net (losses)/gains on investments|||(59,602)|(26,894)|(86,496)|
|Transfers between funds|||6,120|(6,120)|-|
||||_______|_______|_______|
|**Net movement in funds**|||(163,689)|(26,894)|(190,583)|
|**Reconciliation of funds**||||||
|Total funds brought forward|||1,056,691|206,455|1,263,146|
||||_______|_______|_______|
|Total funds carried forward|||893,002
_______|179,561
_______|1,072,563
_______|
17
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
**9. Tangible fixed assets**
|**Land**
**and**
**buildings**
**£**
**COST**
At 1stApril 2020 and
31stMarch 2021
**539,232**
_______
**DEPRECIATION**
At 1stApril 2020
**175,860**
Charge for the year
**26,961**
_______
At 31stMarch 2021
**202,821**
_______
**NET BOOK VALUE**
At 31stMarch 2021
**336,411**
_______
At 31stMarch 2020
363,372
_______|**Fixtures**
**and**
**fittings**
**£**
**62,896**
_______
**18,756**
**6,290**
_______
**25,046**
_______
**37,850**
_______
44,140
_______|**Total**
**£**
**602,128**
_______|
|---|---|---|
|||**194,616**
**33,251**
_______
**227,867**
_______|
|||**374,261**
_______|
|||407,512
_______|
The deeds of the property “Bickham Home” are vested in the Official Custodian for Charities. As permitted under FRS102, the charity has continued to adopt a policy of not revaluing its tangible fixed assets.
There are no details available of the original historical cost of the property.
It is likely that there is a material difference between the open market value of the charity’s property and its book value. The amount of such differences cannot be ascertained without incurring significant costs which, in the opinion of the trustees, is not justified in terms of the benefit to the user of the accounts.
The charity’s buildings have an insured value of £4,706,357.
18
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
|**10. **|**Fixed asset investments**||**2021**|2020|
|---|---|---|---|---|
||||**£**|£|
||Market value brought forward||**548,505**|635,001|
||Gains/(losses) on revaluation||**121,831**|(86,496)|
||||_______|_______|
||Market value as at 31stMarch 2021||**670,336**|548,505|
||||_______|_______|
||**Analysis:**||||
|||**Total**|**Unrestricted**|**Endowment**|
|||**£**|**£**|**£**|
||**United Kingdom**||||
||Listed investments: Funds|**670,336**|**461,908**|**208,428**|
|||**_______**|**_______**|**_______**|
|||**670,336**|**461,908**|**208,428**|
|||**_______**|**_______**|**_______**|
||Investments that comprise more than 5% of the market value at the year||end were:||
||Barclays Charity Fund||**670,336**|548,505|
||||_______|_______|
|**11. **|**Debtors**||**2021**|2020|
||||**£**|£|
||Prepayments and accrued income||**14,708**|30,659|
||||_______|_______|
||||**14,708**
_______|30,659
_______|
19
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
|**12. Creditors: amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**2021**
**£**
**10,815**
**9,543**
**15,130**
**18,703**
_______
**54,191**
_______|2020
£
14,230
8,675
13,238
8,715
_______
44,858
_______|
|---|---|---|
Deferred income of £5,778 (2020: £nil) relates to amounts received from Trafford Borough Council which relate to the next financial year.
## **13. Movement in funds**
||**Unrestricted**|**Endowment**|**Total**|
|---|---|---|---|
||**£**|**£**|**£**|
|Balance at 1stApril 2020|**893,002**|**179,561**|**1,072,563**|
|Incoming resources|**986,944**|**5,519**|**992,463**|
|Resources expended|**(980,872)**|**(569)**|**(981,441)**|
|Transfers|**4,950**|**(4,950)**|**-**|
|Loss on investments|**83,950**|**37,881**|**121,831**|
||_______|_______|_______|
|Balance at 31stMarch 2021|**987,974**
_______|**217,442**
_______|**1,205,416**
_______|
The capital element of the endowment fund must be maintained but income may be used for the general purposes of the Home. For this reason, during the year the trustees have decided to transfer £4,950 (2020: £6,120) from the endowment fund to the unrestricted fund.
## **Comparatives for movement in funds**
||Unrestricted|Endowment|Total|
|---|---|---|---|
||£|£|£|
|Balance at 1stApril 2019|1,056,691|206,455|1,263,146|
|Incoming resources|812,288|6,733|819,021|
|Resources expended|(922,495)|(613)|(923,108)|
|Transfers|6,120|(6,120)|-|
|Loss on investments|(59,602)|(26,894)|(86,496)|
||_______|_______|_______|
|Balance at 31stMarch 2020|893,002
_______|179,561
_______|1,072,563
_______|
## **14. Pensions commitments**
The charity operates a defined contributions pension scheme for its employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. Contributions payable for the year are charged to the Statement of Financial Activities.
The pension charge for the year was £10,577 (2020: £10,343). The amount outstanding at the year end was £1,883 (2020: £2,394).
20
## **THE BICKHAM HOME, BOWDON**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[st] MARCH 2021**
## **15. Leasing agreements**
Future minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year
Between one and five years
Over five years|**2021**
**£**
**12,022**
**8,015**
-
_______
**20,037**
_______|2020
£
11,989
12,909
736
_______
25,634
_______|
|---|---|---|
## **16. Related parties**
The charity is controlled by the trustees. There are no related party transactions (2020: none).
## **17. Reconciliation of net movement in funds to net cash flow from operating activities**
||**2021**|
2020|
|---|---|---|
||**£**|£|
|Net movement in funds|**132,853**|(190,583)|
|Add back depreciation charges|**33,251**|31,808|
|Deduct investment income|**(17,932)**|(22,488)|
|Deduct gains/add back losses|||
|on investments|**(121,831)**|86,496|
|Decrease/(increase) in debtors|**15,951**|(24,528)|
|Increase/(decrease) in creditors|**9,333**|13,915|
||_______|_______|
|**Net cash used in operating activities**|**51,625**|(105,380)|
||_______|_______|
|**18. Analysis of cash and cash equivalents**|||
|Cash in bank and in hand|**200,302**|130,745|
||_______|_______|
|**Total cash and cash equivalents**|**200,302**
_______|130,745
_______|
21
## **THE BICKHAM HOME, BOWDON**
## **INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31[st] MARCH 2021**
|**£**
**INCOME**
Residents’ fees
Resident charges
Donations and grants
Listed investments
Bank interest
Other income
**TOTAL INCOME**
**EXPENDITURE**
**Running Expenses**
Staff costs
**547,738**
Social security
**37,892**
Pension costs
**10,577**
Temporary staff
**97,153**
Food and provisions
**53,352**
Care consumables
**10,510**
Insurance
**11,645**
Council tax
**1,643**
Heat and light
**28,808**
Water charges
**15,951**
Cleaning and waste charges
**26,114**
Garden upkeep
**6,000**
Entertainment for residents
**2,359**
Repairs
**49,491**
Staff Training
**3,176**
Computer software
**5,109**
______
**Administration**
Treasurer's honorarium
**11,134**
Audit fees
**3,600**
Accountancy
**4,533**
Investment charges
**1,830**
Registration fee
**4,270**
Postage, telephone and stationery
**7,053**
General expenses
**4,454**
Bank charges
**310**
Legal and professional fees
**1,183**
Advertising and marketing
-
Management consultants
**2,305**
______
Depreciation
**TOTAL EXPENDITURE**
**(DEFICIT)/SURPLUS FOR THE YEAR**|**2021**
**£**
£
**873,650**
**2,272**
**95,697**
**17,750**
**182**
**2,912**
_______
**992,463**
_______
520,211
37,889
10,343
74,709
53,826
10,072
8,229
1,567
28,125
11,629
24,098
6,265
6,278
53,854
1,786
2,274
______
**907,518**
11,236
3,720
3,763
1,970
4,323
5,688
6,565
37
1,743
1,100
**-**
______
**40,672**
**33,251**
_______
**981,441**
_______
**11,022**
_______|2020
£
787,597
3,074
5,252
21,652
836
610
_______
819,021
_______
851,155
40,145
31,808
________
923,108
________
(104,087)
________|
|---|---|---|
22